Yesterday, on Sunday, March 15, 2020, in response to the COVID-19 pandemic’s impact on U.S. and global economic activity, the Federal Reserve’s Federal Open Market Committee (“FOMC”) cut the target range of the federal funds rate to 0 to 1/4 percent until such time as the FOMC is “confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.” Together with announcing the rate cut, the Federal Reserve took a series of extraordinary actions to support financial markets and promote the flow of credit to households and businesses. The Federal Reserve’s actions followed announcements by other federal financial regulators intended to ease the impact of COVID-19 on the U.S. economy.
Click here to read Covington’s client alert summarizing these developments.